3638 Federal Register / Vol. 63, No. 16 / Monday, January 26, 1998 /Rules and Regulations

that amended the brucellosis regulations

concerning the interstate movement of

cattle by changing the classification of

California from Class A to Class Free.

We have determined that California

meets the standards for Class Free

status. The interim rule was necessary

to relieve certain restrictions on the

interstate movement of cattle from

California.

EFFECTIVE DATE: The interim rule was

effective on October 15, 1997.

FOR FURTHER INFORMATION CONTACT: Dr.

R. T. Rollo, Jr., Staff Veterinarian,

National Animal Health Programs, VS,

APHIS, Suite 3B08, 4700 River Road

Unit 36, Riverdale, MD 20737–1231,

(301) 734–7709; or e-mail:

rrollo@aphis.usda.gov.

SUPPLEMENTARY INFORMATION:

Background

In an interim rule effective and

published in the Federal Register on

October 15, 1997 (62 FR 53531–53532,

Docket No. 97–082–1), we amended the

brucellosis regulations in 9 CFR part 78

by removing California from the list of

Class A States in § 78.41(b) and adding

it to the list of Class Free States in

§ 78.41(a).

Comments on the interim rule were

required to be received on or before

December 15, 1997. We did not receive

any comments. The facts presented in

the interim rule still provide a basis for

the rule.

This action also affirms the

information contained in the interim

rule concerning Executive Order 12866

and the Regulatory Flexibility Act,

Executive Orders 12372 and 12988, and

the Paperwork Reduction Act.

Further, for this action, the Office of

Management and Budget has waived the

review process required by Executive

Order 12866.

List of Subjects in 9 CFR Part 78

Animal diseases, Bison, Cattle, Hogs,

Quarantine, Reporting and

recordkeeping requirements,

Transportation.

PART 78—BRUCELLOSIS

Accordingly, we are adopting as a

final rule, without change, the interim

rule that amended 9 CFR part 78 and

that was published at 62 FR 53531–

53532 on October 15, 1997.

Authority: 21 U.S.C. 111–114a–1, 114g,

115, 117, 120, 121, 123–126, 134b, and 134f;

7 CFR 2.22, 2.80, and 371.2(d).

Done in Washington, DC, this 20th day of

January 1998.

Terry L. Medley,

Administrator, Animal and Plant Health

Inspection Service.

[FR Doc. 98–1777 Filed 1–23–98; 8:45 am]

BILLING CODE 3410–34–P

DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection

Service

9 CFR Part 93

[Docket No. 96–052–3]

Horses from Mexico; Quarantine

Requirements

AGENCY: Animal and Plant Health

Inspection Service, USDA.

ACTION: Final rule.

SUMMARY: We are amending the

regulations regarding the importation of

horses from Mexico to remove the

requirement that such horses be

quarantined for not less than 7 days in

vector-proof quarantine facilities before

being imported into the United States.

This action is warranted because

Mexico has reported no cases of

Venezuelan equine encephalomyelitis

(VEE) in more than a year, and we have

determined that horses imported into

the United States from Mexico without

a 7-day quarantine will not pose a risk

of transmitting VEE to horses in the

United States.

EFFECTIVE DATE: February 10, 1998.

FOR FURTHER INFORMATION CONTACT: Dr.

Gary Colgrove, Chief Staff Veterinarian,

National Center for Import and Export,

VS, APHIS, 4700 River Road, Unit 38,

Riverdale, MD 20737–1231, (301) 734–

3276.

SUPPLEMENTARY INFORMATION:

Background

The regulations in 9 CFR part 93

(referred to below as ‘‘the regulations’’)

govern the importation into the United

States of specified animals and animal

products, including horses from Mexico,

to prevent the introduction into the

United States of various animal

diseases.

On August 8, 1997, we published in

the Federal Register (62 FR 42705–

42707, Docket No. 96–052–2) a proposal

to amend the regulations to remove the

requirement that horses imported into

the United States from Mexico be

quarantined for not less than 7 days in

a vector-free facility. With this change,

horses imported into the United States

from Mexico would only need to be

quarantined for an average of 3 to 4

days.

We also proposed to remove the

requirement that horses from Mexico

intended for importation into the United

States through land border ports be

quarantined in Mexico at a facility

approved by the Administrator of the

Animal and Plant Health Inspection

Service (APHIS) and constructed so as

to prevent the entry of mosquitoes and

other hematophagous insects.

At the time that we published our

proposal, the requirements for horses

imported into the United States from

Mexico were in regulations designated

as 9 CFR part 92. As a result of a final

rule published in the Federal Register

on October 28, 1997 (62 FR 56000–

56026, Docket No. 94–106–9), and

effective on November 28, 1997, the

regulations for importing animals have

been redesignated as 9 CFR part 93.

We solicited comments concerning

the proposed rule for 60 days ending

October 7, 1997. We received 4

comments by that date. They were from

representatives of industry. Two of the

commenters supported the proposed

rule. The remaining commenters had

concerns about the proposed rule. Those

concerns are discussed below.

One commenter felt that a year of

disease-free status is not long enough to

ensure that Mexico is free from VEE.

Accordingly, the commenter suggested

that we retain the 7-day quarantine for

horses entering the United States from

Mexico.

The standing policy of Veterinary

Services, APHIS, is to propose to reduce

the quarantine required for horses from

a region when that region’s last

confirmed case of VEE occurred at least

1 year ago. This policy was

implemented during the last outbreak of

VEE in the State of Chiapas, Mexico, in

1993. One year of disease free status

provides us with confidence that the

outbreak is under control, that the

disease is not spreading, and that the

region has implemented effective

measures to contain the disease. At this

time, the last confirmed case of VEE in

Mexico was reported almost 18 months

ago, and there appears to be no reason

to continue requiring the 7-day

quarantine for horses entering the

United States from Mexico. Therefore,

we are making no changes to the

proposed rule in response to this

comment.

Both commenters expressing concerns

maintained that Mexico has less

stringent criteria than the United States

regarding the movement of horses into

and out of the country and noted that,

because the United States is expected to

abide by the European Union’s strict
Federal Register / Vol. 63, No. 16 / Monday, January 26, 1998 /Rules and Regulations 3639

criteria regarding the transportation of

horses, removing the 7-day quarantine

for horses from Mexico may negatively

affect the disease-free status of the

United States. Accordingly, both

commenters asked that before the

removal of the 7-day quarantine, the

Government of Mexico establish specific

guidelines for identifying, isolating, and

tracking the location and progress of

infectious diseases such as VEE.

As with U.S. regulations, Mexico’s

VEE requirements for horses moving

into Mexico depend on the horses’

region of origin. For example, Mexico

has no restrictions concerning testing

for VEE of horses from Europe because

the disease does not occur, and never

has been reported, in Europe. For horses

from regions where VEE has occurred,

but where the disease may not be

routinely reported, Mexico requires

certification that VEE has not been

reported within a radius of 200

kilometers of the horses’ premises of

origin, and that the horses to be

imported into Mexico test negative for

VEE. In addition, Mexico prohibits the

importation of horses from regions, such

as the country of Venezuela, where

cases of VEE are frequently reported.

The 1996 VEE outbreak in Mexico

resulted from a local strain of VEE, not

a VEE strain that was inadvertently

imported into the country.

Regarding Mexico’s restrictions on

horses moving from Mexico to another

country, Mexico’s handling of horses for

export is dependent on the requirements

imposed by the country of destination.

Mexico does not determine these

requirements. If Mexico wants to export

its horses to a certain country, Mexico

must comply with that country’s

requirements.

Further, Mexico responded to the

1996 outbreak, which occurred in the

southern State of Oaxaca, by (1)

Immediately restricting the movement

of all horses from that State, (2)

intensively vaccinating all horses in the

area of the outbreak, (3) vaccinating

horses in the neighboring States of

Chiapas, Veracruz, and Guerrero, and

(4) in collaboration with the Department

of Public Health, fumigating against

mosquitos, which are vectors for VEE.

These actions prevented any further

spread of the disease, as evidenced by

no further detections of VEE cases in

Mexico for the past 18 months.

In light of Mexico’s import and export

procedures, and the country’s active

control and eradication activities when

outbreaks of VEE have occurred, we do

not believe that reducing the minimum

quarantine period for horses from

Mexico will negatively affect the disease

status of the United States, and we do

not believe that it is necessary to

establish specific guidelines on Mexico

for identifying, isolating, or tracking

VEE. Therefore, we are making no

changes to the proposed rule in

response to these comments.

Therefore, based on the rationale set

forth in the proposed rule and in this

document, we are adopting the

provisions of the proposal as a final rule

without change.

Although a 7-day quarantine will no

longer be required, horses from Mexico

intended for importation into the United

States, except those imported for

immediate slaughter, must continue to

be quarantined at a designated port until

they (1) test negative to an official test

for dourine, glanders, equine

pirplasmosis, and equine infectious

anemia; and (2) test negative to any

other tests that may be required by

APHIS. Additionally, all horses

intended for importation from Mexico

must continue to be quarantined until

they are inspected and found free from

communicable disease and fever-tick

infestation. On average, these tests and

inspections take 3 to 4 days.

Effective Date

This is a substantive rule that relieves

restrictions and, pursuant to the

provisions of 5 U.S.C. 553, may be made

effective less than 30 days after

publication in the Federal Register.

This rule removes the requirement

that horses imported from Mexico be

quarantined for 7 days at vector-proof

quarantine facilities. This requirement

is no longer necessary, due to the

elimination of VEE in Mexico.

Therefore, the Administrator of the

Animal and Plant Health Inspection

Service has determined that this rule

should be effective 15 days after the

date of publication in the Federal

Register.

Executive Order 12866 and Regulatory

Flexibility Act

This proposed rule has been reviewed

under Executive Order 12866. For this

action, the Office of Management and

Budget has waived its review process

required by Executive Order 12866.

We are amending the regulations

regarding the importation of horses from

Mexico to remove the requirement that

such horses be quarantined for not less

than 7 days in vector-proof quarantine

facilities before being imported into the

United States. This action is warranted

because Mexico has reported no cases of

VEE in the past year, and horses

imported into the United States from

Mexico without a 7-day quarantine will

not pose a risk of transmitting VEE to

horses in the United States. Horses

imported from Mexico will still be

required to be held in quarantine until

it has been determined that the animals

are free of exotic pests and diseases.

Horses enter the United States from

Mexico for a variety of reasons,

including for breeding, competition,

racing, research, and slaughter. During

fiscal year 1996, about 7,359 horses

were imported into the United States

from Mexico. In fiscal year 1995, there

were about 15,317 horses imported from

Mexico.

Under the restrictions placed on

imported Mexican horses due to an

outbreak of VEE in that country in 1996,

horses intended for importation into the

United States from Mexico were held in

a vector-proof quarantine facility for 7

days prior to entering the United States.

Because Mexico has been determined to

be free of VEE, this rule eliminates the

requirement for a 7-day quarantine at a

facility approved by the Administrator

of APHIS and constructed so as to

prevent the entry of mosquitoes and

other hematophagous insects. Horses

imported from Mexico will continue to

be required to be held in quarantine

until it has been determined that the

animal is free of exotic pests and

diseases. This quarantine period

generally lasts 3 or 4 days, based on the

turnaround time at the laboratory where

blood tests are performed.

Horses intended for importation into

the United States from Mexico are

quarantined in Mexican facilities

operated by the Mexican Cattleman’s

Association. Different fees are assessed

by the six State chapters which operate

facilities along the United States/Mexico

border. We estimate that the quarantine

charge at vector-proof facilities is

between $5.00 and $35.00 per head per

day for the 7-day quarantine, or $35 to

$250 per animal imported. Quarantine

charges at the other facilities, which are

not vector-proof, that will again be

eligible to quarantine horses intended

for importation into the United States

average $3.00 per head per day. A 4-day

quarantine will cost importers $12.00

per animal imported. Therefore,

importers could potentially save

between $23 and $238 per animal

imported in quarantine charges. Of

course, there are other amenities at

some of the vector-proof facilities that

may still draw some importers to those

facilities. At fiscal year 1996 import

levels, the elimination of the VEE

quarantine will decrease the quarantine

costs of domestic importers by between

$169,257 and $1.75 million annually.

In addition, the removal of the VEE

restriction will eliminate the need for

daily visits during the quarantine period

to the quarantine facility by APHIS’
3640 Federal Register / Vol. 63, No. 16 / Monday, January 26, 1998 /Rules and Regulations

1 Information relating to the Paperwork Reduction

Act appears at the end of this Issuance.

veterinary medical officers (VMOs) and

animal health technicians (AHTs) to

conduct temperature checks of the

animals to be imported. APHIS charges

hourly user fees for inspection services

conducted outside the United States.

The published hourly fee for VMOs and

AHTs is $56.00. The agency estimates

that it takes 3 hours for APHIS

personnel to travel to Mexican

quarantine facilities and complete the

temperature checks. The elimination of

these checks will save the importer

about $1,176 per shipment. Since

slaughter horse imports from Mexico

average about 40 head per shipment,

this is a savings of about $29.40 per

head. Other types of imported horses

from Mexico average about two head per

shipment, for a savings of $588 per

head. At fiscal year 1996 import levels,

the elimination of the user fees for horse

inspection for VEE in Mexico will

decrease the cost of importation by

about $2.5 million annually.

The Regulatory Flexibility Act

requires that the Agency specifically

consider the economic impact

associated with rule changes on small

entities. The Small Business

Administration (SBA) has set forth size

criteria by Standard Industrial

Classification (SIC) which can be used

as a guide in determining which

economic entities meet the definition of

a small business. The SBA’s definition

of a small business engaged in the

wholesale trading of livestock is one

that employs no more than 100 persons.

Currently, there are 1,992 domestic

entities that trade livestock wholesale.

About 1,965 of these entities are

classified as small by the SBA. The

exact number of domestic wholesale

livestock traders currently importing

Mexican horses cannot be determined.

However, entities, whether large or

small, engaged in importing Mexican

horses will be positively impacted by

this rule change.

Under these circumstances, the

Administrator of the Animal and Plant

Health Inspection Service has

determined that this action will not

have a significant economic impact on

a substantial number of small entities.

Executive Order 12988

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. This rule: (1) Preempts all State

and local laws and regulations that are

inconsistent with this rule; (2) has no

retroactive effect; and (3) does not

require administrative proceedings

before parties may file suit in court

challenging this rule.

Paperwork Reduction Act

This rule contains no new

information collection or recordkeeping

requirements under the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501

et seq.).

List of Subjects in 9 CFR Part 93

Animal disease, Imports, Livestock,

Poultry and poultry products,

Quarantine, Reporting and

recordkeeping requirements.

Accordingly, 9 CFR part 93 is

amended as follows:

PART 93—IMPORTATION OF CERTAIN

ANIMALS, BIRDS, AND POULTRY,

AND CERTAIN ANIMAL, BIRD, AND

POULTRY PRODUCTS;

REQUIREMENTS FOR MEANS OF

CONVEYANCE AND SHIPPING

CONTAINERS

1. The authority citation for part 93

continues to read as follows:

Authority: 7 U.S.C. 1622; 19 U.S.C. 1306;

21 U.S.C. 102–105, 111, 114a, 134a, 134b,

134c, 134d, 134f, 135, 136, and 136a; 31

U.S.C. 9701; 7 CFR 2.22, 2.80, and 371.2(d).

§ 93.308 [Amended]

2. In § 93.308, paragraph (a)(1) is

amended by removing the reference to

‘‘§ 93.317’’ and adding in its place the

reference to ‘‘§§ 93.317 and 93.324’’.

§ 93.324 [Amended]

3. Section 93.324 is amended by

removing the words ‘‘, for not less than

7 days and’’ and by removing the words

‘‘approved by the Administrator and

constructed so as to prevent the entry of

mosquitoes and other hematophagous

insects’’.

§ 93.326 [Amended]

4. In § 93.326, the first sentence is

amended by removing the words

‘‘93.323, and 93.324’’ and adding in

their place the words ‘‘and 93.323’’.

Done in Washington, DC, this 20th day of

January 1998.

Terry L. Medley,

Administrator, Animal and Plant Health

Inspection Service.

[FR Doc. 98–1775 Filed 1–23–98; 8:45 am]

BILLING CODE 3410–34–P

DEPARTMENT OF THE TREASURY

31 CFR Part 103

Conditional Exceptions to Bank

Secrecy Act Regulations Relating to

Orders for Transmittals of Funds by

Financial Institutions

AGENCY: Financial Crimes Enforcement

Network, Treasury.

ACTION: Grant of conditional exceptions.

SUMMARY: This document contains two

conditional exceptions to a provision of

the Bank Secrecy Act regulations. The

exceptions permit financial institutions

to comply more efficiently with

requirements for inclusion of certain

information in transmittal orders for

transmissions of funds.

EFFECTIVE DATE: January 26, 1998.

FOR FURTHER INFORMATION CONTACT:

Peter Djinis, Associate Director,

FinCEN, (703) 905–3920; Charles

Klingman, Financial Institutions Policy

Specialist, Office of Program

Development, FinCEN, (703) 905–3920;

Stephen R. Kroll, Legal Counsel,

FinCEN, and Cynthia L. Clark, Acting

Deputy Legal Counsel, Office of Legal

Counsel, FinCEN, (703) 905–3590.

SUPPLEMENTARY INFORMATION:

I. Introduction

The statute generally referred to as the

‘‘Bank Secrecy Act,’’ Titles I and II of

Public Law 91–508, as amended,

codified at 12 U.S.C. 1829b, 12 U.S.C.

1951–1959, and 31 U.S.C. 5311–5330,

authorizes the Secretary of the Treasury,

inter alia, require financial institutions

to keep records and file reports that are

determined to have a high degree of

usefulness in criminal, tax, and

regulatory matters, and to implement

counter-money laundering programs

and compliance procedures. Regulations

implementing Title II of the Bank

Secrecy Act (codified at 31 U.S.C. 5311–

5330) appear at 31 CFR part 103. The

authority of the Secretary to administer

the Bank Secrecy Act has been

delegated to the Director of FinCEN.1

II. FinCEN Issuance 98–1

This document, FinCEN Issuance 98–

1, grants two conditional exceptions to

the operation of the rules contained at

31 CFR 103.33(g). The background,

purpose, and terms of the two

exceptions are explained below.

Background

On January 3, 1995, the Financial

Crimes Enforcement Network

(‘‘FinCEN’’) of the Department of the

Treasury issued a rule, 31 CFR 103.33(g)

(the ‘‘Travel Rule’’), requiring financial

institutions to include certain

information in transmittal orders

relating to transmittals of funds of

$3,000 or more. The Travel Rule

complements the rules jointly issued by

the Board of Governors of the Federal

Reserve System and FinCEN (the ‘‘Joint

Rule’’) requiring the maintenance of